Can you please provide a solution all the information is as under:-
Treasury Bonds Term-structure of Interest Rates Code Coupon Maturity (years) Face value Maturity (years) Zero-Coupon Yields Coupon Payment Bond Price
| Treasury Bonds | Term-structure of Interest Rates | ||||||||
| Code | Coupon | Maturity (years) | Face value | Maturity (years) | Zero-Coupon Yields | Coupon Payment | Bond Price | ||
| GSBS18 | 3.25% | 0.50 | 100 | 0.5 | 1.860% | 1.625 | $100.6929 | ||
| GSBE19 | 5.25% | 1.00 | 100 | 1.0 | 1.870% | 2.625 | $103.3421 | ||
| GSBS19 | 2.75% | 1.50 | 100 | 1.5 | 1.945% | 1.375 | $101.1998 | ||
| GSBG20 | 4.50% | 2.00 | 100 | 2.0 | 2.005% | 2.25 | $104.8939 | ||
Suppose there is a zero-coupon bond (ZCB) with a face value of $100 and 2 years to maturity, which currently trades at $95. Construct an arbitrage portfolio by trading in the ZCB and also in the first four treasury bonds to show how you can make an arbitrage profit. You need to indicate your portfolio in terms of weights and dollar amounts of the bonds and explain your answer.
In: Finance
Complete the following...
Submit:
//diceType.h (header file)
#ifndef H_diceType
#define H_diceType
class diceType
{
public:
diceType();
// Default constructor
// Sets numSides to 6 with a random numRolled from 1 - 6
diceType(int);
// Constructor to set the number of sides of the dice
int roll();
// Function to roll a dice.
// Randomly generates a number between 1 and numSides
// and stores the number in the instance variable numRolled
// and returns the number.
int getNum() const;
// Function to return the number on the top face of the dice.
// Returns the value of the instance variable numRolled.
private:
int numSides;
int numRolled;
};
#endif // H_diceType
============================================
//diceTypeImp.cpp (implementatio file)
//Implementation File for the class diceType
#include
#include
#include
#include "diceType.h"
using namespace std;
diceType::diceType()
{
srand(time(nullptr));
numSides = 6;
numRolled = (rand() % 6) + 1;
}
diceType::diceType(int sides)
{
srand(time(0));
numSides = sides;
numRolled = (rand() % numSides) + 1;
}
int diceType::roll()
{
numRolled = (rand() % numSides) + 1;
return numRolled;
}
int diceType::getNum() const
{
return numRolled;
}
In: Computer Science
In the market for chairs, Aaron is a consumer. He values the
first chair at MB = 85, the second at MB = 50, and the third at MB
= 20. Sandra is a producer. The first chair costs her MC = 10 to
make. The second costs her MC = 40, and the third MC = 80.
1. If the price of chairs is 55, how many chairs will Sandra sell
to Aaron?
2. If the price of chairs is 45, what will be the Consumer Surplus?
Producer Surplus? Total Surplus?
3. The government decides it wants a lot of chairs made and so
wants a low chair price. So it charges Aaron a tax of 100, then
gives that tax money to Sandra in exchange for her lowering the
price of chairs to 10 and producing as many chairs as Aaron wants
to buy.
With this tax in place, a price of 10, and Sandra selling as many
chairs as Aaron wants to buy, what will be the Consumer Surplus?
Producer Surplus? Total Surplus?
In: Economics
**Seen a few wrong answers for this question. Please answer if you're 100% sure**
Consider two bonds, each with an interest rate (i) of 5% annum, coupon payments (C) of $20 annum, and face values (F) of $1000. The first bond matures in 20 years and the second bond matures in 10 years.
(a) Find the prices of the two bonds. Next price a console with
the same interest rate and coupon payment. Report F × i.
(b) Repeat part (a) when the coupon payment is $100.
(c) Repeat part (a) once again with a coupon payment of $50.
(d) What does this tell you about the price of a console relative to long-run bonds?
In: Economics
Consider three Perfectly Competitive market scenarios. The market demand curve is given by P = 100 – Q where P is the market price and Q is the market quantity. In the first scenario, the market supply function is P = $50. In the second, the market supply function is P = Q, and in the third, the market supply function is Q = 50.
For each scenario, draw the appropriate graph; then calculate the equilibrium price and quantity, the total Consumer Surplus, and the total Producer Surplus. Finally, briefly explain what is happening to the total Producer Surplus as you go from the first to the second to the third scenario. More importantly, explain why this is happening. The best answers will be framed in terms of an elasticity.
In: Economics
A parent company paid $500,000 for a 100% interest in a subsidiary. At the end of the first year, the subsidiary reported net income of $40,000 and paid $5,000 in dividends. The price paid reflected understated equipment of $70,000, which will be amortized over 10 years.
What would be the subsidiary income reported on the parent's unconsolidated income statement, and what would the parent's investment balance be at the end of the first year under each of these methods?
a. The simple equity method
b. The sophisticated equity method
c. The cost method
In: Accounting
In: Accounting
if the stock price is 100$ and return rate is 15%. then what would be the initial price to expected rate of return ratio?
In: Economics
Assume that a stock is selling at a price of $100.
The 95 call option on the stock sells for $5 and the 105 put option sells for $8.
What is the intrinsic and time value on the 95 call and $105 put?
If the stock increases to $110, what will be the dollar and percentage return on the call option. What will be the return on the put option?
Assume that the investor writes a call option on the above stock. What will be the investor’s gain or loss if the stock closed at $100?
Assume that the investor writes a put option on the above stock. What will be the gain or loss if the stock sells for $110?
In: Finance
Assume that a stock is selling at a price of $100. The 95 call option on the stock sells for $5 and the 105 put option sells for $8.
What is the intrinsic and time value on the 95 call and $105 put?
If the stock increases to $110, what will be the dollar and percentage return on the call option. What will be the return on the put option?
Assume that the investor writes a call option on the above stock. What will be the investor’s gain or loss if the stock closed at $100?
Assume that the investor writes a put option on the above stock. What will be the gain or loss if the stock sells for $110?
In: Finance